Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

Thematic (Sector/Industry)

The World Semiconductor Trade Statistics (WSTS) for September have been released, and they indicate that 2020 will see modest revenue growth despite the COVID-19 pandemic.  This is a pleasant surprise given that so many people are currently unable to work or to spend money on their favorite activities.

The World Semiconductor Trade Statistics (WSTS) for September have been released, and they indicate that 2020 will see modest revenue growth despite the COVID-19 pandemic.  This is a pleasant surprise given that so many people are currently unable to work or to spend money on their favorite activities.

September Semiconductor Stats In: 2020 Growth Despite Pandemic

Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Equity Bottom-Up

Taiwan Semiconductor (TSMC) / Equity Bottom-Up

TSMC has been a significant outperformer versus Samsung Electronics.   How can TSMC continue this performance in the near future?   We take a look at their customer profiles as well what has been priced in and has not for the next few years.

TSMC has been a significant outperformer versus Samsung Electronics.   How can TSMC continue this performance in the near future?   We take a look at their customer profiles as well what has been priced in and has not for the next few years. 

TSMC Vs. Samsung.  Where's the Net Add Upside?

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Advanced Micro Devices / Equity Bottom-Up

As we had speculated previously, it turns out that AMD’s teaser benchmarks for its graphics cards, at the Ryzen 5000 series presentation, were not for its highest end card. The company’s presentation on its newest line-up underscores the enormous improvement in competitiveness that AMD has engineered over the last few years and has implications not just for its direct competitors but also supplier TSMC and Nvidia customer, Nintendo.

As we had speculated previously, it turns out that AMD’s teaser benchmarks for its graphics cards, at the Ryzen 5000 series presentation, were not for its highest end card. The company’s presentation on its newest line-up underscores the enormous improvement in competitiveness that AMD has engineered over the last few years and has implications not just for its direct competitors but also supplier TSMC and Nvidia customer, Nintendo.

AMD – RX6000 Series Should Make Intel and Nvidia Sweat and TSMC and Nintendo Smile a Touch

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

<a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a> is currently trading at more than 2 standard deviations above its 5yr- and 10yr historical average PE range.  A premium makes sense given a significant improvement in their competitive positioning and being in the early stages of a cyclical upswing given the advent of 5G, which should also accelerate the adoption of Internet-of-Things applications. 
This raises the question as to what a fair valuation multiple for TSMC should be. In this insight I make a comparative valuation by looking at, arguably, the two most important companies in TSMC’s value chain, both dominant in their competitive environments, namely TSMC’s largest supplier <a href="https://www.smartkarma.com/entities/asml-holding-nv" target="_blank" data-smartkarma-citation="entities:21097:1" rel="noopener">ASML Holding NV (ASML NA)</a> and their largest customer <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple Inc (AAPL US)</a>. 
My analysis focuses on the companies’ competitive positioning, geographic exposure, customer concentration, growth profile and outlook, cash flow generation, balance sheets, capital allocation and returns on invested capital to assess what a fair relative valuation might look like.

TSMC (2330 TT) is currently trading at more than 2 standard deviations above its 5yr- and 10yr historical average PE range.  A premium makes sense given a significant improvement in their competitive positioning and being in the early stages of a cyclical upswing given the advent of 5G, which should also accelerate the adoption of Internet-of-Things applications. 
This raises the question as to what a fair valuation multiple for TSMC should be. In this insight I make a comparative valuation by looking at, arguably, the two most important companies in TSMC’s value chain, both dominant in their competitive environments, namely TSMC’s largest supplier ASML Holding NV (ASML NA) and their largest customer Apple Inc (AAPL US). 
My analysis focuses on the companies’ competitive positioning, geographic exposure, customer concentration, growth profile and outlook, cash flow generation, balance sheets, capital allocation and returns on invested capital to assess what a fair relative valuation might look like.

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>US underweight rises to highest ever level among Global investors</li>
<li>Tech and Consumer Discretionary outperformance drives underweights higher</li>
<li>Increasing underweight driven by passive inflows as large cap stocks dominate indices.</li>
<li>Active funds running larger underweight positions among top index constituents.</li>
<li>Active buying to close underweight holdings fuels the fire of the large-cap rally further still.</li>
</ul>Analysis taken from our global active manager research, covering 391 global funds with a combined AUM of $750bn


US underweight rises to highest ever level among Global investors
Tech and Consumer Discretionary outperformance drives underweights higher
Increasing underweight driven by passive inflows as large cap stocks dominate indices.
Active funds running larger underweight positions among top index constituents.
Active buying to close underweight holdings fuels the fire of the large-cap rally further still.
Analysis taken from our global active manager research, covering 391 global funds with a combined AUM of $750bn

The Anatomy of the US Underweight (And the Effect of Rising Passive ETF Flows in the US).

United States

NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software.  The Company's products provide interactive 3D graphics to the mainstream personal computer market.

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NVIDIA Corp (NVDA US)

September Semiconductor Stats In: 2020 Growth Despite Pandemic

September's semiconductor industry stats indicate 5+% growth for 2020. Can the business sustain this, or will COVID-19 and/or the US-China Trade...

Jim Handy

TSMC Vs. Samsung. Where's the Net Add Upside?

Why TSMC is still a buy as we look into 2022. Does Samsung have the scale to keep Qualcomm in their grasp and if not what is the next catalyst for...

Ken S. Kim

AMD – RX6000 Series Should Make Intel and Nvidia Sweat and TSMC and Nintendo Smile a Touch

AMD's ability to suddenly match or better Intel and Nvidia in CPUs and GPUs bodes well for the company but we also feel that GPU developments are...

Mio Kato

TSMC: A Comparative Valuation

In this insight, I make a comparative valuation by looking at two value-chain companies, both dominant in their own right, namely TSMC’s largest...

Wium Malan, CFA

The Anatomy of the US Underweight (And the Effect of Rising Passive ETF Flows in the US).

ETF inflows drive underweights in US equities to record levels. Active buying to close underweights in major index stocks fuels the rally further...

Steven Holden

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